Rebar Futures Fluctuate Amid Cautious Sentiment Ahead of Holidays; Steel Market Sees Mixed Supply-Demand Dynamics

Rebar futures fluctuated today, closing at 3,164, down 0.19% from the previous trading day. As the holiday approaches, market sentiment has turned cautious, with most transactions focusing on low-priced resources.

Supply side, the operating rates of BF and EAF steel mills have diverged. EAF steel mills have reduced operating hours due to less-than-ideal profitability, while BF steel mills, benefiting from moderate profitability, have resumed normal operations as planned, leading to an increase in pig iron production. Demand side, with improving weather, construction site demand continues to recover, and building material inventories remain in a destocking cycle. This week, total rebar inventory stood at 7.4463 million mt, down 2.57% WoW. Overall, the steel market is experiencing both supply and demand growth, with building material inventories continuing to decline. The fundamental imbalance is not yet prominent, and steel prices are expected to maintain a rangebound fluctuation next week. Subsequent attention should focus on the recovery of demand and macro-level developments.